Travel Food Services Grows System-Wide Sales 18.8% in Q2 FY27 as Consolidated PAT Rises to Rs. 1,473 Million

Travel Food Services Limited (TFS) reported system-wide sales of Rs. 8,654 million in the second quarter of FY27, up 18.8 per cent year on year, and Rs. 17,090 million in the first half, up 18.4 per cent, despite a decline in passenger traffic at the airports it manages. Consolidated sales rose 19.5 per cent to Rs. 4,253 million in the quarter and 20.1 per cent to Rs. 8,775 million in the first half. Consolidated profit after tax was Rs. 1,473 million in Q2 FY27, up 50.5 per cent from Rs. 979 million a year earlier, and Rs. 2,761 million in H1 FY27, up 43.2 per cent from Rs. 1,929 million. PAT as a percentage of consolidated sales was 34.6 per cent in the quarter, up 714 basis points, and 31.5 per cent in the first half, up 508 basis points.

The company said profitability was supported by sales growth, higher other income and a larger share of profit from joint ventures. PAT included write-backs of provisions, net of tax, of about Rs. 468 million in Q2 FY27 and about Rs. 566 million in H1 FY27, the first-half figure including a partial GST provision write-back of about Rs. 98 million (net of tax) recognised in Q1 FY27. TFS said its balance sheet remained debt-free, with a cash balance of Rs. 10,309 million as of 30 September 2026. Cash balance, as defined by the company, includes cash and cash equivalents, other bank balances and current investments.

System-wide sales growth combined net contract gains and like-for-like sales. At the system-wide level, net contract gains were 11.1 per cent in the quarter and 13.5 per cent in the first half, with more than 70 units mobilised over the past year, primarily across New Delhi, Cochin, Navi Mumbai, Noida and Bhogapuram. Like-for-like sales grew 3.5 per cent in the quarter and 2.2 per cent in the first half. Passenger traffic at TFS-managed airports fell, the company said, amid factors influenced by the West Asia crisis; on a system-wide basis, passenger traffic declined 4.8 per cent in the quarter and 2.2 per cent in the first half. Like-for-like growth was supported by menu enhancement and premiumisation. On a consolidated basis, net contract gains were 11.0 per cent in the quarter and 15.7 per cent in the first half, with new units mobilised at Delhi Airport (Terminal 1 and Terminal 2), Cochin Airport (Domestic Terminal 1) and the recently opened Noida Airport. Consolidated like-for-like sales grew 6.6 per cent in the quarter and 5.3 per cent in the first half.

TFS expanded its system-wide presence to 22 airports as of 30 September 2026, from 18 a year earlier, after starting operations at Alluri Sitarama Raju International Airport, Bhogapuram. The system-wide Travel QSR portfolio grew to 535 outlets from 464, with more than 70 outlets added across New Delhi, Navi Mumbai, Cochin, Noida and other airports. The lounge portfolio stood at 35, down from 37, mainly because of closures tied to terminal transitions and airport renovations. The brand portfolio widened to 156 brands, with 21 in-house, regional and international brands added over 12 months. Under Elite Assist Technology and Services Private Ltd. (EATS), TFS said it is extending lounge-access distribution beyond banking and card-network channels. For the second consecutive year, Kyra Lounge at Hong Kong International Airport was named Asia’s Leading Airport Lounge at the World Travel Awards 2026.

Commenting on the results, Varun Kapur, Managing Director and CEO, TFS, said: “It was one of the most challenging quarters for passenger traffic in recent periods, amid an unusually volatile operating environment. Despite these headwinds, TFS' system-wide sales grew 18.8% year-on-year and the business continued to deliver healthy underlying profitability, demonstrating the resilience of our portfolio and expanding network. This performance reinforces our confidence in the business and its ability to grow through periods of near-term volatility.

“Our strategy remains focused on strengthening the core while building the next phase of growth for TFS. Over the last twelve months, we have mobilised more than 70 units and expanded our presence to 22 airports. Many of these are still ramping up, and with a significant pipeline of outlets yet to be mobilised across new and existing airports, we have good visibility of continued growth as these operations mature. Alongside this, we continue to develop new growth avenues in passenger services, including EATS.

“Looking ahead, our priorities remain clear: deepen our presence at existing airports, scale operations across new and greenfield airports, and selectively expand beyond our core, particularly in international lounges and expressways. With a strong, debt-free balance sheet and an expanding network, we believe TFS is well positioned to capture the long-term growth opportunities across the aviation and broader travel ecosystem.”

TFS, founded by K Hospitality Corp and partnered with UK-listed SSP Group plc, describes itself as a leading operator of Travel QSR outlets and lounges, with a system-wide presence at 22 airports across India, Malaysia and Hong Kong, and Travel QSR outlets at select highway sites in India. System-wide figures cover TFS, its subsidiaries, associates and joint ventures.